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Gym Business

Gym Business

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Learn about the Gym Business industry and find information on how to start a Fitness Center or Gym. Don’t forget you can receive free or low-cost training and free professional business advice, from your local Small Business Development Center!

View our related business reports here: Sports & Fitness Industry.

Get a free Fitness Center/Gym Business plan template on our Business Plans page.

Fitness Center/Gym Business Forecast

Following the end of the stay-at-home orders enacted during the pandemic, Americans demonstrated a desire to return to the gym, with the most recent report from the IHRSA indicating an 8.1% increase in members from pre-pandemic levels. Like many other sectors faced with declining revenue, the fitness industry has adapted and is embracing innovations that continue to shape gyms’ service offerings.

The fitness industry post-pandemic recovery has been driven by new consumer trends. MindBody reports a strong return to fitness centers, with 81% of gym-goers expressing motivation as a primary driver for in-person fitness classes, followed by access to instructors, accountability, and access to equipment. The report also touches on the response of consumers post-pandemic with the increased awareness and demand for holistic wellness in the fitness industry. Among gym trends is a shift from cardio to strength training. Of particular note is the rebound of boutique studios with a projected growth of 17% by 2025.

The use of fitness technology to expand service offerings during the pandemic has resulted in enhanced member experiences. Looking ahead, companies within the fitness industry will continue to expand the use of technology to provide enhanced experiences to customers, increase visibility and maximize revenue. Forbes reports top technology trends such as Fitness in the Metaverse, IoT-Enabled Fitness Devices, and Gamified Fitness to be top trends utilized by gym’s and fitness centers. Here are additional post-pandemic business resources specific to this industry:

Fitness Center/Gym Business Overview & Trends

NAICS Code: 713940, SIC Code: 7991

Fitness Centers and Gyms are an important segment of the U.S. Fitness industry with a significant impact on the U.S. economy. Statista projected revenue for the fitness, health, and gym club industry in the United States to an estimated $30.8 billion. Additional data from Statista, indicates the online revenue for the digital fitness segment, with wearables projected at 3.843 billion while the apps category anticipated to reach $1.798 billion in 2024.

While health clubs make up only a segment of the sports and fitness industry, the International Health, Racquet & Sportsclub Association (IHRSA) reports that in the U.S. in 2022, there was 31,028 health clubs.

This Fitness Centers industry summary is from First Research which also sells a full version of this report.

  • “Companies in this industry operate fitness and recreational sports facilities that offer fitness equipment, exercise classes, swimming pools, and fitness instruction services. Major companies include Equinox Group, Gold’s Gym, LA Fitness, Life Time Fitness, Planet Fitness, and 24 Hour Fitness (all based in the US), along with Fitness First and Virgin Active (both based in the UK), Konami Sports Club (Japan), and McFit (Germany).
  • Worldwide, fitness centers are valued at about $90 billion, according to Statista. There are more than 200,000 health and fitness clubs worldwide. The US, Germany, and the UK have the highest number of fitness club memberships, according to Finances Online.
  • The US industry includes about 37,000 fitness and recreation center establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion.
  • Competitive Landscape: Demand is partly linked to income levels and partly to market demographics. The profitability of individual companies depends on good marketing. Large companies have economies of scale in advertising and in buying equipment. Small companies can compete effectively if they have favorable locations or meet customer demands for personalized service and friendly atmosphere. The industry is fragmented in the US: the 50 largest companies account for about a third of revenue.”

Additional resources on Fitness Center/Gym Industry:

Fitness Center/Gym Customer Demographics

According to Centers for Disease Control, the percent of adults age 18 and older who met the physical activity guidelines for aerobic physical activity: 46.9%. As well, the percent of adults age 18 and older who met the physical activity guidelines for both aerobic and muscle-strengthening activity: 24.2%.

Major customer segments for Gym, Health, and Fitness Clubs are reported by IBISWorld, which offers a full version of the report for purchase here.

  • The primary gym consumers, those aged 20-64, face financial constraints, prompting gyms to focus on lower-priced memberships.
  • Gym participation among for those under 18, representing 21.5% of the market, is tied to the income of their parents or guardians.
  • Consumers aged 18-34 make up 26.9% of the market and are more engaged in fitness centers, but face time constraints due to school or work commitments.
  • The segment aged 35-50 make up 25.9% of the market and they face equal or greater time constraints than their prior segment given work and home obligations.
  • Consumers over 50 make up 25.7% of the market and are the most engaged in fitness centers, a highly sought-after market segment as included in this segment are retirees’ with greater free time.

Additional information on fitness center/gym customers can be found in a variety of topical and trade publications, including:

Fitness Center/Gym Business Startup Costs

According to a survey conducted by Sage Accounting, the average fitness center and gym startup costs vary depending on the equipment required and amenities. The estimated cost to open a gym according to their survey is as follows:

  • Simple cycling studio: $50,000
  • Modest studio gym: $65,000
  • Mid-size gym: $115,000
  • Bottom line: startup costs range from $50,000 for a budget facility to over $1,000,000 for a mega-gym with all the amenities

Additional gym startup costs information can be found at:

  • Cost to Open a Gym and Fitness Center from Profitable Venture
    Small scale gym: $250,000 – $500,000
    Medium scale gym: $1.5 million
    Large scale gym: $5 million
    Cost of guying a gym franchise: $80,000
  • Cost to Open a Gym from Upmetrics
    The cost of opening a gym varies significantly depending on the concept, size, type, and services of your business venture $86,000-$229,000.
  • How to Open a Gym from ZenBusiness
    Opening a gym that’s small to mid-sized could range from $50,000 to $500,000.
  • Must-have Gym Equipment for Opening a New Gym from GymDesk
    Checklist of equipment needed to open a gym
  • Must-Have Gym Equipment from VerywellFit
    List of standard gym equipment

Many fitness centers/gyms are part of a franchise. Purchase fees can range between $20,000 – $50,000, but there are additional costs associated with starting a franchise. The overall costs, along with ongoing franchising fees, will have a large impact on your startup and ongoing operating costs. Contact your prospective franchisor or view their website for details. For more information on franchise businesses, see our Franchise Small Business Help Topic.

Fitness Center/Gym Business Plans

The following are sample Fitness Center/Gym Business Plans for reference. For additional business plan samples, visit our Business Plans guide.

Fitness Center Business Associations

Trade associations often are excellent sources of information on an industry. Here are some relevant Fitness Center and Gym associations:

Fitness Center/Gym Business Regulations

The section provides a general awareness of fitness center/gym regulations and agencies to consider when starting a Fitness Center/Gym Business. Check with your state and municipality for rules and regulations that may impact the business in your area.

The state in which your business is located likely has regulations regarding gym membership contracts and rules on how liability resulting from on-site injuries is handled.

Fitness Center/Gym Business Publications

Fitness Business Employment Trends

The US Census Bureau reports on the size of Fitness and Recreational Sports Centers and number of employees (NAICS 713940):

  • Approximately 39,359 establishments in the US
  • 537,198 total employees across the nation

Labor costs are important factors for Fitness Center and Gym business owners. Here is the most recent Fitness Trainers and Instructors labor market summary from the Bureau of Labor Statistics. A more specific breakdown of other fitness and recreational sports centers occupations is available from the Bureau of Labor Statistics.

2022_BLS_Fitness Trainers

  • “The median annual wage for fitness trainers and instructors was $45,380 in May 2022.
  •  Work Environment: Fitness trainers and instructors work in facilities such as recreation centers, health clubs, and yoga studios. Many work variable or part-time schedules that may include nights, weekends, or holidays.
  • Job Outlook: Employment of fitness trainers and instructors is projected to grow 14 percent from 2022 to 2032, much faster than the average for all occupations. About 69,000 openings for fitness trainers and instructors are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.”

Additional Small Business Resources

Already in business or thinking about starting your own small business? Check out our various small business resources:

Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!

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